india’s blue economy

1 | P a g e

2 | P a g e

INDIA’S BLUE ECONOMY

A DRAFT POLICY FRAMEWORK

ECONOMIC ADVISORY COUNCIL TO THE PRIME MINISTER

GOVERNMENT OF INDIA

NEW DELHI

SEPTEMBER 2020

3 | P a g e

ii A Strategy Paper towards Evolving A Sustainable Ocean Policy forIndia

Table of Contents

LIST OF ACRONYMS 5

FOREWORD 6

1. INDIA’S VISION OF THE BLUE ECONOMY……………………………………………………………....…..11

2. STAKEHOLDER CONSULTATIONS BY EAC PM………………………………………………………….…13

2.1 STRATEGY AND APPROACH ………………………………………………………………….................................13

2.2 DEFINITION OF THE BLUE ECONOMY…………………………………………………………………….……….13

2.3 COMPOSITION AND TERMS OF REFERENCE FOR WORKING GROUPS IN KEY PRIORITYAREAS ……….14

3. KEY RECOMMENDATIONS OF THE WORKING GROUPS………………………………………………..15 (A) NATIONAL ACCOUNTING FRAMEWORK FOR BLUE ECONOMY AND OCEAN GOVERNANCE... ................ 15

(B) COASTAL MARINE SPATIAL PLANNING AND TOURISM…………………………………………………............15

(C) MARINE FISHERIES, AQUACULTURE AND FISH PROCESSING SECTOR…………………………… .……….17

(D) MANUFACTURING, EMERGING INDUSTRIES, TRADE, TECHNOLOGY, SERVICES AND SKILL

DEVELOPMENT………………………………………………………………………………………………….…..….20

(E) LOGISTICS, INFRASTRUCTURE AND SHIPPING (INCLUDING TRANSHIPMENTS ………… ... ….…............22

(F) COASTAL AND DEEP-SEA MINING AND ENERGY……………………………………………………….………...24

(G) SECURITY, STRATEGIC DIMENSIONS AND INTERNATIONAL ENGAGEMENTS……………....….……….…26

4. THE WAY FORWARD – A DRAFT POLICY FRAMEWORK FOR INDIA’S BLUE ECONOMY…….….28

5. CONCLUSION ………………………………………………………………………………………………..……...35

6. ANNEXE-I ………………………………………………………………………………………………………..…..36

ANNEXE-II…………………………………………………………………………………………………….……..38

ANNEXE-III………………………………………………………………………………………………….……….43

4 | P a g e

List of Acronyms ABNJ Areas Beyond National Jurisdiction

AIS Automatic Identification System

ASEAN Association of Southeast Asian Nations

CBD Convention of Biological Diversity

CCRF Conduct for Responsible Fisheries

CEUs Coastal Economic Units

CEZs Coastal Economic Zones

CLCS Commission on the Limits of the Continental Shelf

CMSP Coastal and Marine Spatial Plans

COMAPS Coastal Ocean Monitoring and Prediction System

EAC-PM Economic Advisory Council to the Prime Minister

EAFM Ecosystem Approach to Fisheries Management

EEZ Exclusive Economic Zones

EIA Environmental impact assessment

EPR Extended Producer Responsibility

FDI Foreign Direct Investment

FICCI Federation of Indian Chambers of Commerce & Industry

FTA Free Trade Agreement

INCOIS Indian National Center for Information Services

IORA Indian Ocean Rim Association

IMTA Integrated Multitrophic Aquaculture

ISBA International Seabed Authority

ISIC International Standard Industrial Classification of All Economic Activities

IUU Illegal, unreported and unregulated

LCoE Levelized Cost of Electricity

LNG Liquefied Natural Gas

LOC Line of Credit

LDC Least Developed Countries

FMR Fishery Management Regions

MCs Marine Clusters

MFRA Marine Fishing Regulation Acts

MoES Ministry of Earth Sciences

MOFPI Ministry of Food Processing Industries

MoHUA Ministry of Housing and Urban Affairs

MPEDA Marine Products Export Development Authority

NAS National Accounting System

NBEC National Blue Economy Council

NBEF National Blue Economy Fund

OECD Organisation for Economic Co-operation and Development

QTL Qualitative Trait Locus

RoFR Right of First Refusal

SBM Swachh Bharat Mission

SDG Sustainable Development Goal

SNA System of National Accounts

TERI The Energy and Resource Institute

UN United Nations

UNCLOS United Nations Convention on the Law of the Sea

VHF Very High Frequency

VMS Vessel Monitoring System

VLCC Very Large Crude Carriers

WWF World Wildlife Fund

WTO World Trade Organization

5 | P a g e

Foreword

1. The Economic Advisory Council to the Prime Minister (EAC-PM), in

pursuance of the Honorable Prime Minister Narendra Modi’s thrust on the Blue

Economy, has taken up the initiative to evolve a policy approach to the Blue

Economy. Given the gaps and involvement of several Ministries, Departments

and Agencies working in this domain, there is an urgent need for a unified and

coordinated effort to address issues because they have macro-economic

implications.

2. It is my privilege to present a draft Policy for India’s Blue Economy. This

has been formulated after several rounds of multiple deliberations with relevant

Ministries, think tanks and experts. The draft expresses both the strategy as well

as the vision that can be adopted by the Government of India. This exercise can

be the foundation to harness Blue resources to secure a better economic future

for the people in a sustainable manner.

3. I thank the Chairpersons of the seven Working Groups under the Blue

Economy initiative, the Conveners, Members and the associated Young

Professionals for their efforts. Their support has been very significant. They have

contributed to a series of comprehensive reports that take stock of the different

dimensions of the Blue Economy. Each report identified existing and emerging

challenges and made a set of robust recommendations to capture the huge

potential and opportunities in each sector. I also commend the contribution of

Dr. Sumita Misra, Senior Adviser, EAC-PM as the main convening officer who

followed up and coordinated the completion of this complex exercise. I also thank

the Members of the Steering Committee for their active participation during the

deliberations.

4. I hope that this document will contribute meaningfully to the Blue

Economy initiative of the Government of India.

Ratan P. Watal

Member Secretary

EAC-PM

6 | P a g e

7 | P a g e

8 | P a g e

viii A Strategy Paper towards Evolving A Sustainable Ocean Policy forIndia

9 | P a g e

INDIA & ITS TERRITORIAL WATERS

Source : Ministry of Earth Sciences, 2019

10 | P a g e

1. INDIA’S VISION OF THE BLUE ECONOMY

1.1 The economic philosophy of the Blue Economy was first introduced in 1994 by Professor Gunter

Pauli at the United Nations University (UNU) to reflect the needs of future growth and prosperity, along

with the threats posed by global warming. The concept was based on developing more sustainable models

of development including concepts of engineering based on “no waste and no emissions”. The Blue

Economy assumed greater importance after the Third Earth Summit Conference - Rio+20 in 2012. The

conference focused inter alia on expanding the concept of Green Economy to include the Blue Economy.

The concept received a fillip when the United Nations’ Sustainable Development Goal 14 sought to

“conserve and sustainably use the oceans, seas and marine resources for sustainable development” as a

guiding principle for global governance and use of ocean resources. Several member nations have now

evolved their own definitions and paradigms of the Blue Economy. Globally, the Blue Economy was

expected to grow at double the rate of the rest of the world economy according to pre-pandemic OECD

estimates. It must be noted that value addition from the Blue Economy includes that from coastal

manufacturing and services, maritime trade, shipping, offshore and coastal energy, deep sea minerals,

aquaculture and fisheries, and marine-related technologies.

1.2 The world-over different national and global initiatives are being undertaken to harness the Blue

Economy. Countries like Australia, Brazil, U.K., U.S., Russia, and Norway have developed dedicated

national ocean policies with measurable outcomes and budgetary provisions. Countries like Canada and

Australia have enacted legislation and established hierarchal institutions at federal and state levels to

ensure progress and monitoring of Blue Economy targets.

1.3 India was among the first in the world to create a Department of Ocean Development in 1981, now

the Ministry of Earth Sciences (MoES). Based on the experience of more than three decades, India has

come a long way with the launch of new programmes such as “Deep Ocean Mission,” “Oceanography

from space” and “Launching of the data buoys” along the Indian coastline. These initiatives have enabled

satellites to transmit data on various oceanographic features including weather for scientific analysis.

MoES has joined the United Nations on the “Clean Seas Programme” to develop strategies for estimating

and reducing Marine Litter/Plastic in the oceans, which is also a part of SDG-14. MoES has also signed

two contracts with the International Seabed Authority (ISBA) for deep ocean exploration of minerals

(Ploymetallic Nodules and Hydrothermal Sulphide) in the Indian Ocean. In order to reap the benefits of

growth in these sectors, India must develop a sustainable policy for both upstream and downstream

activities.

1.4 The Government of India’s Vision of New India by 2030 enunciated in February 2019 highlighted

the Blue Economy as one of the ten core dimensions of growth. The Blue Economy was mentioned as the

sixth dimension of this vision stressing the need for a coherent policy integrating different sectors so as to

improve the lives of the coastal communities and accelerate development and employment. Recently, Prime

Minister in his 74th Independence Day Speech in 2020 highlighted that in the contemporary context a

neighbour is not just the one with whom we share a physical border but also those with whom there is

harmony in relations. Closer to home there is also the ongoing objective to connect our island territories to

11 | P a g e

submarine optical fiber cables to ensure high-speed broadband connectivity for the islands at par with

services in the mainland. In this context India should recognize an important emerging economic and

strategic axis that spreads from the East Coast of Africa to the Western Pacific Ocean, which can be called

the Seychelles-Singapore-Samoa (SSS) axis. This axis should form the basis of a robust Blue Economy

Policy for India.

1.5 India has a unique maritime position. Its 7517 km long coastline is home to nine coastal states and

1382 islands. The country has 12 major ports and 187 non-major ports, handling about 1400 million tons

of cargo every year, as 95% of India’s trade by volume transits by sea. India’s Exclusive Economic Zone

of over two million square kilometers is rich in living and non-living resources and holds significant

recoverable resources of crude oil and of recoverable natural gas. The coastal economy also sustains over

4 million fishermen and other coastal communities. With these vast maritime interests, the Blue Economy

in India has a vital relationship with the nation’s economic growth

1.6 In recent years, there have been a series of initiatives for sustainable development in the maritime

domain. These initiatives are catalysts to strengthen the growth of India’s maritime interests and our Blue

Economy. In the Post COVID-19 global scenario India is likely to witness significant growth in the marine

sector by efficient and sustainable utilization of ocean resources.

1.7 India should strive for efficient and sustainable utilization of ocean resources and to integrate and

Boost Ocean related capabilities, capacities and skills, with a view to accelerate employment and gross

value addition, while safeguarding the environment and in harmony with the UN Sustainable Development

Goals.

1.8 A clear agenda based on a transparent policy framework needs to be formulated to develop India’s

Blue Economy. The objective of this policy framework will be to enhance the country’s GDP by promoting

sustainable and inclusive economic growth in this new domain while aligning India’s development agenda

with national security goals and international commitments.

12 | P a g e

2. STAKEHOLDER CONSULTATIONS BY EAC-PM

2.1 The Ministry of Earth Sciences has been doing unique and significant work under its charter.

However, in the contemporary context there is a need for a holistic and inter sectoral approach to address

evolving issues in this important domain called the Blue Economy. Accordingly, with the aim of taking

the Prime Minister’s vision forward, the EAC-PM initiated inter-ministerial and stakeholder consultations

to evolve a draft policy framework for India’s Blue Economy.

Strategy and Approach

2.2 As a first step, a Plenary Group meeting was organized with all the relevant stakeholders in May

2018. Broad ideas regarding the nature and scope of the Blue Economy were discussed with the aim of

evolving a common understanding on the subject. This was followed by the first meeting of the Steering

Committee in August 2018 comprising of the Secretaries of relevant Ministries and domain experts.

Following this meeting, seven priority areas were identified and Working Groups were constituted with

the participation of senior officers of the relevant line Ministries, as well as select external experts from

participating institutions. (Annex-I & II)

2.3 The committee members agreed to describe India’s Blue Economy as an emerging concept

comprising the entire eco-system of ocean resources including marine, maritime and the onshore coastal

economic sub systems within India’s legal jurisdiction which have close linkages with economic growth,

environmental sustainability and national security. It was noted that an earlier Draft Policy on the Blue

Economy was initiated by MoES in 2015, but was never finalized. The present report has built upon several

ideas incorporated in that paper.

Definition of Blue Economy

2.4 Two aspects emerged regarding the Blue Economy during the discussions. First, that any

conceptualization of the Blue Economy has to be multidimensional and inter-sectoral. Second, there is no

universally agreed definition of the term Blue Economy. Therefore, it is critical that each country should

define its parameters in its own context.

2.5 In the Indian context, the Blue Economy policy has to encompass many aspects. For instance, it

must include all aspects of off-shore sovereignty. It must include economically valuable resources in water,

as well as on and under the sea beds, onshore infrastructure like sea ports, maritime routes connected with

domestic and international trade, and offshore energy resources, be they fossil-based or renewable. It must

envisage new and emerging marine technologies and latest developments in science. It must look at

production of goods and services from fisheries, marine manufacturing, shipping, and tourism that is

connected with the sea and the oceans. Other equally significant aspects that require inclusion in this policy

are ocean governance, maritime security, sustainability concerns and adherence to international treaties

and commitments.

2.6 Keeping all these aspects in mind, India’s Blue Economy can be defined as a subset of the national

economy comprising of the entire system of ocean resources and man-made economic infrastructure in

13 | P a g e

marine, maritime and the onshore coastal zones within India’s legal jurisdiction, which aid in the

production of goods and services and have clear linkages with economic growth, environmental

sustainability and national security.

Composition and Terms of Reference for Working Groups in Key Priority Areas

2.7 Seven Working Groups headed by eminent persons looked at key priority areas relevant for India.

2.8 The working groups kept in view the following reference points while preparing their reports

• Overview of the sector/subject.

• Existing policies and regulations.

• The global scenario for the sector.

• Suggestions for short and medium term strategies.

• Assessment of challenges in each sector.

• Role of the government and the private sector.

• Policy recommendations.

2.9 Valuable inputs were taken from individual experts, representatives of various ministries of the

government and external experts from institutions such as the Resource Information System for

Developing Countries (RIS), the National Maritime Foundation (NMF), The Energy and Resource

Institute (TERI), the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Indian

Ocean Rim Association (IORA).

2.10 The composition of the Steering Committee and of the Working Groups is provided at Annex I and

II respectively. The key recommendations of the Working Groups are summarized in the following

chapter.

The seven priority areas identified were:

Priority Area 1: National Accounting Framework for Blue Economy and Ocean Governance

Priority Area 2: Coastal Marine Spatial Planning and Tourism

Priority Area 3: Marine Fisheries, Aquaculture and Fish Processing.

Priority Area 4: Manufacturing, Emerging Industries, Trade, Technology, Services and Skill

Development

Priority Area 5: Logistics, Infrastructure and Shipping (including transshipments)

Priority Area 6: Coastal and Deep-Sea Mining and Offshore Energy

Priority Area 7: Security, Strategic Dimensions and International Engagement

14 | P a g e

3. KEY RECOMMENDATIONS OF THE WORKING GROUPS

The key recommendations of the seven working groups are set out in brief below. The full Working

Group reports can be seen in the links at Annex-III.

(A) National Accounting Framework for Blue Economy and Ocean Governance

3.1 The size of the Blue Economy in India has conservatively been estimated to be about 4% of

Gross Domestic Product. It is likely to be even higher if the methodology is improved. A new robust

mechanism needs to be devised to collect data for estimating the Blue Economy in India. The first step

should be to constitute an Expert Group to identify sectors and sub-sectors/ activities, which fall under

the purview of the Blue Economy.

3.2 In this context, India needs to learn from global best practices. For this there is a need to

establish active scientific collaborations with leading countries/institutions to develop suitable

scientific tools and methodologies relevant to Blue Economy measurement and management.

3.3 In order to generate reliable data regarding the Blue Economy, the following recommendations

were made:-

• Enlarge the 2008 National Industrial Classification to accommodate various untapped

activities associated with the blue economy.

• Engage with all relevant ministries for the collection of data.

• Constitute or identify an official agency to secure relevant data at the dis-aggregated

industry level.

• Intervene in the formative process of the UN International Standard Industrial

Classification of All Economic Activities (ISIC) Revision 5.

3.4 It was recommended to commence periodical studies on specific sectors to assess the relative

composition of different sub-sectors within the Blue Economy, with the objective of assessing the

weights for different components within a broad sector related to the Blue Economy. These weights

would be used to calculate the contribution of the sub-sectors in the Blue Economy.

3.5 While main streaming the Blue Economy in future estimates of national income and GDP, the

need to estimate the possible damage that may be caused to the environment and the oceanic

ecosystem on account of the exploitation of different ocean resources was also highlighted in this

report.

(B) Coastal Marine Spatial Planning and Tourism

3.6 The Working Group deliberated upon two distinct subjects - Coastal Marine Spatial Planning

and the potential and approach to tourism in the coastal and marine economy. Accordingly, the Group

formed two sub groups and gave its recommendations on each which are discussed below.

15 | P a g e

Adopt and Adapt the UNESCO-IOC Guide

3.7 The Group felt that India needs to adapt the Coastal Marine Spatial Planning (CMSP) approach

of the Intergovernmental Oceanographic Commission (IOC) - UNESCO (2009) guidelines, as has

been done by many other marine-based economies that modified this guide to meet their local and

national needs.

3.8 The Group stressed on the necessity of establishing a national level authority to define the

scope and nature of CMSP. The national level body would be responsible for achieving integration

between various sectors of Blue Economy, between local communities, private players and the

government at all levels.

3.9 As a first step, this national authority will need to establish an Expert Group to set clearly

defined goals and objectives of CMSP. Therefore, it was recommended that an Expert Group should

be tasked to present a plan within a period of one year from date of its formation. Such a plan should

be a dynamic one, and thus subject to review and revision every 4-5 years.

Mapping and Data Policy

3.10 Mapping of ocean resources is needed to develop a functional CMSP. India has made

considerable progress in terms of mapping its coastal regions and EEZ. This sub group emphasized

that all existing data and mapping policies should be streamlined and dovetailed with CMSP

requirements under the suggested national level authority, covering the relevant coastal areas, offshore

areas and the EEZ and Continental Shelf. Therefore, formulation of a new National Map and Data

Policy was recommended balancing emerging requirements of data security and transparency.

Enhance Domestic Capacity and International Cooperation

3.11 The Group opined that India needs to proactively expand domestic human resource capacities

needed for the implementation of the CMSP. This can be achieved by providing impetus to Blue

Knowledge in higher educational institutions. International cooperation with global leaders in CMSP

and Indian Ocean Rim Association (IORA) countries needs to be encouraged to adopt best practices

and the transfer of technology.

Tourism and Development

3.12 The Group noted that while there is significant potential for tourism, it is imperative to curb

uncontrolled and unplanned tourist activities that cause stress on the carrying capacity of coastal

ecosystems, especially those in our fragile island territories. The principle of carrying capacity needs to be

adhered to while developing coastal tourist destinations and marine activities. For man and nature to thrive,

it is vital to link tourism with the Coastal Marine Spatial Planning (CMSP) under the effective oversight of

the proposed national level authority.

Impact Assessment

3.13 To assess the impact of tourism, it is necessary to periodically initiate studies to map the tourist

16 | P a g e

arrivals, tourism infrastructure, major attractions/products in India’s coastal areas and island territories and

measure their impact on environmentally sensitive and ecologically fragile areas. This will enable evidence-

based policy making. The sub group recommended that the Ministry of Tourism should initiate this exercise

expeditiously in coordination with the Ministry of Environment, Forest and Climate Change (MoEF&CC)

and the MoES, starting with the most ecologically vulnerable coastal areas.

Beach Benchmarking Standards

3.14 Since beaches are important tourist attractions, the Group emphasized that it is necessary to promote

beach benchmarking standards using eco-labelling, sustainability procedures, and waste management

systems, In accordance with the Blue Flag Standards. The MoEF&CC has already rolled out ‘Blue Flag

Certification’ in 13 nominated pilot beaches across coastal States/UTs in India. The certification scheme

aims to improve beach clean-up and sustainable development to attract more tourists and make beaches

pollution-free. It is recommended that this exercise be pushed vigorously and be extended to other beaches

which are under environmental threat from human activity.

Development of a Plastic Elimination and National Marine Litter Policy

3.15 The Group also noted that marine pollution has grown to be a major concern today globally, dominated

by plastic waste. The United Nations has also called for the prevention and significant reduction in marine

pollution of all kinds by 2025, particularly from land-based activities which are the main source of plastics and

micro plastics. India is also committed to phase out single use plastics by 2022. The Plastic Waste Management

Rules introduced in 2016 and further amended in 2018 provide the regulatory framework for management of

plastic waste generated in the country.

The Group underlined that India needs a far more robust waste management strategy and effective

extended producer responsibility in place to effect the behavioral changes needed to counter the rising ocean

pollution. In this context, the development of a comprehensive Plastic Elimination and National Marine Litter

Policy (PENMLP) becomes an imperative. MoEF&CC, MoES and Ministry of Housing and Urban Affairs

(MoHUA) should accordingly take the lead in framing and completing the draft PENMLP within a period of

one year. The MoES through National Centre for Coastal Research (NCCR), with its long-term data on Coastal

Ocean Monitoring and Prediction System (COMAPS), should be closely involved in this exercise. Such a

policy should aim at the phased elimination of plastic waste and other marine pollutants to meet the SDG 14.1

by 2025 by working in close coordination with state governments and local bodies.

(C) Marine Fisheries, Aquaculture and Fish Processing Sector

3.16 The Working Group examined all facets relating to fisheries development, management, processing,

marketing and finance and made detailed recommendations which are summarized below.

Increasing Sustainable Marine Capture Fisheries

3.17 In order to increase the sustainability of marine fishing, this Group recommended the following

actionable suggestions with clear objectives:

17 | P a g e

• Develop a new national policy for the marine capture fisheries sector, putting in place legal and

institutional frameworks for the effective management of marine fisheries.

• Prevent significant adverse impacts on Vulnerable Marine Ecosystems (VMEs) to achieve

Potential Yield Estimates (PYE).

• Explore the deployment of a dedicated satellite system for management and regulation of

fisheries and allied activities.

• Ensure mandatory data input availability from primary stakeholders (fishermen) via log sheets;

integration of marine resource survey data and commercial landings data.

• Assess commercially valuable stocks by a body designated by Department of Fisheries (DoF).

• Strengthen the Fisheries Survey of India (FSI) with state-of-art fisheries resource survey vessels.

• Strengthen Monitoring Control and Surveillance such as the Vessel Monitoring System (VMS)

to track the movement of fishing vessels in order to know where and when the fish are caught,

how, and by whom.

• Regulate fisheries practices and revisit fishing closure seasons

• Undertake patrolling in high seas and Areas Beyond National Jurisdiction (ABNJ).

.

Enhancing Mariculture Production

3.18 Maricuture is a subset of aquaculture and is the farming of marine organisms in salt water for food

and other products such as pharmaceuticals and Jewellery items like pearls. This is an important emerging

subsector of the Blue Economy. In order to encourage sustainable mariculture production, the Group

suggested the following steps:

• Form a new implementing agency which will be called the ‘Mariculture Authority of India’.

• Develop a comprehensive National Mariculture Policy

• Develop and commercialize mariculture, including brood banks, nucleus breeding centers,

hatcheries and nurseries and feed supply through approaches such as sea cage farming for finfish,

bivalve farming, seaweed farming, Integrated Multitrophic Aquaculture (IMTA) and

Recirculating Aquaculture System (RAS) and encouraging marine ornamental fisheries.

• Prevent aquatic diseases and create health management infrastructure by technological

backstopping.

• Promote R&D for long term sustainable development of mariculture.

Monitoring, Assessment and Management of Ocean Health

3.19 Ocean health needs effective monitoring and management, for which the following steps were

recommended:

• Use of technology to monitor, prevent and mitigate marine pollution, including from plastics

and micro plastics.

• Encourage low carbon fisheries to improve water quality near coral reefs and put in place

integrated tracking-map-based information systems to indicate closed and protected areas.

• Develop innovative technologies which will be critical for the restoration of the deteriorated

18 | P a g e

sensitive ecosystems like coral reefs, mangroves and wetlands.

Marine Biotechnology and Bio Prospecting

3.20 There is an urgent need to control marine bio-prospecting, an input into marine biotechnology. To

do so, the following steps are necessary:

• Map the genetic biodiversity of the oceans and generate a germplasm inventory. This will

facilitate well-informed decisions on the conservation of oceanic resources.

• Pursue interventions in mariculture by selective breeding, Qualitative Trait Loci (QTL) analysis,

trait manipulation etc. to enhance productivity of mariculture activities.

• Create a separate National level institution for “Marine Biotechnology” that focuses on the non-

food sector for generation of new technologies to tap the immense potential for

commercialization.

Marketing and Financial Inclusion for Marine Fishery

3.21 In order to improve the marketing of marine products and ensure financial inclusion of the

communities involved, it is necessary to:

• Reform fish auctioning by introducing IT based automated/ electronic auctioning systems. The

latest developments in secure block chain technology need to be explored in this regard.

• Enhance end-to-end traceability of fish consignments by installing computerized bar-coding,

systems for forward and backward tracking of consignments and alert mechanisms.

• Introduce a Market Intervention Scheme (MIS) in marine fisheries to insulate fishermen and fish

vendors against extreme price fluctuations.

• Earmark 10% of the total priority sector lending for fishermen. The funding needs of the fish

processing industry should be addressed outside the purview of the priority sector lending.

• Evaluate interest subvention and credit subsidy programmes to encourage sustainable fishing

and fish marketing practices.

• Introduce financial incentives to attract technology and investment in deep sea fishing and value

chain development.

• Develop innovative insurance products to cover multiple risks faced by the fishermen, including

loss of life, loss of craft and gear, other assets or means of livelihood.

• Popularize micro-insurance among fisher folk by involving Self Help Groups (SHGs) Micro

Finance Institutions.

Legal and Regulatory Reforms

3.22 The Group felt that there are several legal and regulatory measures that need to be taken to facilitate

many of the actionable points given above. These are given below.

• Ensure management and regulation of fisheries and fisheries related activities for sustainable use

of resources beyond territorial waters by enacting a comprehensive central legislation by

19 | P a g e

expanding and revising the scope of the Marine Fishing Regulation Act (MFRA).

• Establish Fishery Management Regions (FMRs) and an Ecosystem Approach to Fisheries

Management (EAFM).

• Aim to increase the Marine Conservation Areas to meet India’s commitments to the SDG 14

goal of increasing the areas of conservation to 10%.

• Introduce a comprehensive central legislation for management of aquatic diseases and health

along with quarantine and certification services.

Harvest, Post-Harvest Processing

3.23 The Group recommended that in order to improve harvest and post-harvest processing, it will be

necessary to:

• Adopt a Code of Conduct for Responsible Fisheries (CCRF).

• Upgrade fishing fleets to match the behavioral responses of targeted species.

• Enable capital intensity in infrastructure development as per international standards, especially

modern landing facilities, refrigeration and centralized vending centers to minimize post- harvest

losses.

• Ensure quality control in value chains from harvest to delivery.

• Dovetail ongoing and future schemes of Department of Fisheries with Ministry of Food

Processing Industries (MoFPI) and Ministry of Shipping schemes on cold chain development

and modernization of fishing harbors.

• Introduce a cluster-based approach for the development of post-harvest and processing

infrastructure.

(D) Manufacturing, Emerging Industries, Trade, Technology, Services and Skill

Development

3.24 This Group looked at a wide range of interconnected economic development issues. The Group felt

that the “Blue” aspect of manufacturing, trade, technology services and skills has to be identified carefully

but should remain integrated with the larger interconnections within the national economy. Some of the key

recommendations are given below.

Capital Infusion

3..25 The Group felt that the regulations to enhance Ease of Doing Business (EODB) and the flow of

private investment while applying time-tested paradigms of public-private-partnerships should be also

geared to Blue Economy investments specially where mobilization of FDI is involved.

The Group suggested creation of coordination mechanisms between Municipalities/Panchayats,

Coastal State Governments and the Union Government to enable investments in Blue Economy sectors and

to put in place appropriate monetary and non-monetary incentives for high-employment generation sectors.

20 | P a g e

Promoting Manufacturing in MSMEs

3.26 The MSME sector can play a catalytic role in unlocking the potential for growth in blue

manufacturing by augmenting product value addition, wage employment and income generation. Therefore,

the Group stressed that it is vital to develop manufacturing in MSMEs relating to the Blue Economy in

coastal areas by using existing schemes to access finance.

Constitution of Expert Group

3.27 In order to achieve the convergence and synergies between various sectors related to Blue Trade

and Blue Manufacturing the Group recommended the constitution of a task force or expert group with

relevant industry participation to examine the issues involved. Deep-sea capture fishing, hatcheries, aquaria

products, and processed fish products are part of Blue Trade. Biotechnological products from biopharma,

food additives, cosmetics and biofuel, offshore petroleum and gas from shallow water will also be very

significant in the future.

Sector Specific Policies

3.28 It was felt that activity specific policy initiatives in building of merchant and military ships, boats,

dredging equipment, fishing ships/boats, trawler, spare parts and repair services are needed. Shipbreaking,

sea cabling and its servicing, ice-making, rope, net, gear, marine equipment, etc. can be important avenues

for manufacturing firms to tap into. To overcome the constraints related to market access for Blue Trade

products, technology based solutions need to be evolved. Innovations, technology, product development and

product quality would pave the way for rapid expansion in Blue Trade.

Blue Economy Focus

3.29 The Group recommended to include a separate chapter on Blue Industry in the industrial policies of

Government of India and State Governments. Further, it was proposed that a separate chapter on Blue Trade

should be included in the Export-Import policy.

R&D and Innovation

3.30 The setting up R&D Hubs in the nine coastal states to promote use of Artificial Intelligence (AI) and

other new technologies in marine sectors such as deep-sea mining, marine logistics and shipping will further

catalyze development of the Blue Economy.

Human Resource Planning

3.31 The Group proposed to classify human resource requirements into six categories - operative grades,

administration, skilled trades, associate professional & technical, professional, and management and

accordingly

21 | P a g e

• Offer Blue Economy related educational programs on various technical and managerial skills in

universities and engineering/technical institutes of the coastal states.

• Give on-the-job industrial training at the Industrial Training Institutes (ITIs) for existing

workforce and devise awareness programs to sensitize youth about Blue Economy jobs with

state level chambers of commerce and industry.

(E) Logistics, Infrastructure and Shipping (Including Transshipments)

3.32 The Working Group studied the entire spectrum of shipping and port infrastructure and logistics

sectors along with issues pertaining to the maritime domain. The major recommendations have been

summarized below.

Shipbuilding

3.33 Government should formulate a 30-year holistic shipbuilding plan to be implemented across existing

and future greenfield indigenous shipyards under the Atmanirbhar initiative to give a boost to shipping and

shipbuilding sector.

Ships should be designed and built to Energy Efficient Design Index Standards under the following

categories:

• Very Large Crude Carriers (VLCC), Liquefied Natural Gas (LNG) Carriers, Container Carriers,

• Cruise ships, Ro-Ro ships,

• Medium size ships for coastal shipping,

• Dredgers, yard craft,

• Deep Sea Fishing Vessels,

• Research ships,

• Solar powered fishing boats, and

• Electric driven passenger ferries operating in inland waterways.

Sagarmala & Maritime Clusters

3.34 Sagarmala will be a key to comprehensive port led coastal development. To promote port-led

industrialization, the Govt. has identified 12 major ports and 14 Coastal Employment Zones (CEZs) as part

of the National Perspective Plan under the Sagarmala program. Each CEZ comprises Coastal Economic

Units (CEUs), with single or multiple industrial clusters where there will be manufacturing units.

The Group recommended that similar port led maritime clusters should also be built with government

support on the West and East coasts with shipbuilding industry as the nucleus of the maritime clusters and

supporting skill development centers for the coastal communities. This will promote ancillary

manufacturing under MSMEs and services activities and employment generation. Enhanced focus and

funding for the Sagarmala scheme was also recommended by the Group.

22 | P a g e

Establishment of a Maritime Development Fund

3.35 The Group recommended the establishment of a Maritime Development Fund with fund

mobilization from stakeholders in Public Private Partnership ventures. Such a Maritime Development Fund

would comprise sub-funds catering to requirements of following sub sectors:-

• Shipbuilding, ship repair and ship recycling

• Maritime infrastructure

• Port equipment and services

• Cruise terminals and Marinas

• Technology development to cater for industry in the maritime sector.

Enhancing Logistics & Connectivity

3.36 The Group stressed that development of road, rail and inland waterways infrastructure as last mile

connectivity for ports is extremely important to achieve efficiency in logistics, time and costs. Accordingly,

the following recommendations were highlighted:-

• Adopt the concept of hub and spoke for gateway and feed exports.

• Build warehousing, freight aggregation and cargo consolidation infrastructure for efficient

catchment.

• Implement a cost-effective national multimodal network integrated on a digital grid to reduce

logistics and transportation costs.

• Coordinate and integrate the monitoring process of infrastructure projects under

implementation, including Sagarmala, Industrial Corridors, Coastal Economic Zones, Dedicated

Freight Corridors, Bharatmala etc. This will ensure complementarity in various projects so as to

develop overall national maritime infrastructure capacity.

• Develop multi-modal logistics parks and create value-added services (packaging, tagging,

crating) in a single location.

Development of Transhipment Hubs

3.37 A focus on the development of an entire eco-system for trans-shipment hubs, with provision of

competitively priced services, bunkering facilities and standardization of procedures emanating from

customs regulations was recommended. The issue pertaining to taxation also needs hormonisation.

Sustainable Port Development

3.38 To ensure sustainable development of the coastal areas, both the ports as well as the shipping traffic

therein should be made fully compliant with current environmental regulations. The use of renewable

energy, water conservation, modern waste management and energy efficiency should also form critical

components of the sustainable development model. A zero waste and circular economy approach was

recommended to be adopted and implemented.

23 | P a g e

National Maritime Policy and Apex Body

3.39 The extremely complex and strategic maritime sector has multiple stakeholders with conflicting

interests. Therefore, a National Maritime Policy for integration and coordination within and between various

stakeholders in central and state governments for more effective management of maritime regions,

resources, economy, ecology and security is a necessity.

Currently there is no overarching national authority that coordinates and integrates maritime

initiatives and programmes of the Ministries and states and creates ‘common cause’ with all stakeholders.

There is therefore, an urgent need to institutionalize maritime affairs in an organized manner that maximizes

the potential of the Blue Economy. Such an organization should be at the Apex Level in Government

drawing various stakeholders on a single platform to debate, discuss and balance conflicting interests,

prevent duplication of efforts and optimize utilization of maritime resources for the sustainable development

of India’s Blue Economy.

(F) Coastal and Deep-Sea Mining and Energy

3.40 The Group deliberated upon the possibilities of value extraction through the mineral and metal

resources present in the oceans and generation of renewable energy through offshore wind, waves, tidal and

geo-thermal sources. It also examined the areas for future scientific research and development. The key

recommendations are discussed below.

Technology Development for Exploration & Mining

3.41 For scientific exploration of the oceans, substantial investments in engineering and technology need

to be prioritized along with deployment of human resources. The technologies related to developing deep

ocean mining, deep ocean platforms, drilling rigs, pipeline network, launching and recovering systems,

power sources, navigation and guidance, positioning system, etc. are critical and should be prioritized. The

development of manned submersibles is a major requirement before mining is commenced and undertaking

a manned submersible mission by 2023 is recommended.

Mission Offshore Wind Energy

3.42 In order to develop viable offshore wind energy projects, it is recommended that various national

institutions should be bought on a common platform through a Mission Mode project under the Ministry of

New & Renewable Energy, Government of India. For example, the Institute of Engineering and Ocean

Technology (IEOT) of Oil and Natural Gas Corporation at Panvel, Maharashtra, in association with IIT

Madras, National Institute of Ocean Technology (NIOT )and National Institute of Wind Energy(NIWE) and

other national research institutions can contribute in various areas of structural engineering and designing

of facilities for offshore wind farms. The Mission can also explore suitable international partnerships while

optimizing indigenization under Atmanirbhar Bharat.

National Placer Mission

24 | P a g e

3.43 A placer deposit or placer is an accumulation of valuable minerals formed by gravity separation

from a specific source rock during sedimentary processes. India is rich in coastal and offshore Placer

minerals including strategic ones such as nickel, uranium, copper, thorium, titanium, poly metallic

sulphides, poly metallic manganese nodules, coastal ilmenite, garnet and zircon among others.

There is a need to put in place a National Placer Mission to give the requisite thrust to R&D, to

create classification and flow sheets etc. for workable deposits and data base of onshore and offshore placers,

value-added products, skill maps, develop indigenous mining technologies including equipment

manufacturing.

Suitable policies for issuing the prospecting and mining licenses (PLs & MLs) in a timely manner,

assessing environmental impact and audit would also need to be fine-tuned. The current provisions under

Coastal Zone Regulation Act do not permit mining of placers, except of atomic minerals and should be

appropriately revisited.

Financial and Human Resources

3.44 For India to emerge as a leader in future oriented areas like ocean energy or ocean mining accelerated

investments in R&D, building necessary infrastructures, research vessels and technology development is

required.

Further, a pool of human resource personnel-scientists, engineers and other scientific personnel

needs to be built up and engaged on priority. This human resource requirement will increase with India’s

growing capabilities regarding the Blue Economy and requires medium and long-term planning at the higher

technical education levels.

Exploration Rights for Cobalt

3.45 The Group recommended that India needs to assume a lead role in exploration of cobalt-rich

Seamount Ferro Manganese Crust (SFMC) in the Indian Ocean as it is necessary that potential areas be

identified and exploration rights are obtained in the Indian Ocean at the earliest.

Indian Representation in the Commission on the Limits of the Continental Shelf (CLCS)

3.46 Almost ten years have elapsed since India made its first partial submission to the Commission on

the Limits of the Continental Shelf (CLCS). The Group recommended that a new presentation including

recently available additional information should be made. It also recommended to make a fresh presentation

to the new Commission as the Opening Statement made by the Head of the Delegation is the very foundation

of the claim. Accordingly, a presentation was made in 2019 before the sub-commission constituted to

examine India’s submission in western offshore region. The Indian submission is under active consideration

of the Commission.

The present Commission will hold office till 2022. It is for the first time since the Commission was

established in 1997, that India is not represented in the Commission. India has contributed significantly to

25 | P a g e

the work of Commission and it is important that we continue to share our expertise and add value to the

work. The next election will be in 2022 and the Group strongly recommended that India should have an

expert elected to the Commission.

Further, India is yet to make its claim in the Bay of Bengal Fan. Sri Lanka has already made its

claims under the Statement of Understanding and its claims are under consideration. In order to avoid any

possible adverse effect, it is imperative that India makes its submission concerning the Bay of Bengal

without any further delay and provides a strong presentation to CLCS.

Protecting Marine Biodiversity

3.47 With respect to marine organisms and related issues of biological diversity, the provisions of the

Convention of Biological Diversity (CBD), 1993 need to be taken into account. In areas within national

jurisdiction, The United National General Assembly (UNGA) has decided to develop an internationally

legally binding instrument on conservation and sustainable use of marine biological resources in areas

beyond national jurisdiction (in short called ‘BBNJ’), under UNCLOS. It is suggested that India examine

the same and enhance its participation in BBNJ keeping in mind its own national concerns on development

and sustainability.

Protection of Marine Environment and Creating Natural Marine Resources Database

3.48 Activities related to marine minerals, such as prospecting, exploration and exploitation need to

address the protection of marine organisms. Currently, exploitation regulations are being discussed in the

International Seabed Authority (ISBA) and it is likely take a few years before finalization, depending on

which India would evolve its own stand.

However, it is crucial at this juncture to carry out an inventory of our marine resources – both living

and non-living. Therefore, it is proposed that a National Marine Resources Database including sea bed

resources mapping be developed expeditiously.

(G) Security, Strategic Dimensions and International Engagements

3.49 The strategic, security and geo-political dimensions of the Blue Economy both globally and

specially in the context of our maritime neighborhood were studied by the Group and the salient

recommendations are highlighted below.

Need for Apex and Multitier Planning Body

3.50 The Group recommended to set up a multi-sectorial and well integrated high level institutional

mechanism for policy formulation, implementation and monitoring of various aspects of Blue Economy

(BE) to ensure greater synergy between sectors and higher budgetary allocations. The establishing of

subordinate mechanisms at the level of various partner ministries, state governments and other similar

bodies for monitoring implementation of BE initiatives was also recommended. This would encourage

convergence of appropriate policy and operational measures at all relevant levels.

26 | P a g e

Maritime Domain Awareness

3.51 The Group stressed that developing a three-dimensional marine domain awareness would be a vital

part of the approach. This would include integrating national geo-intelligence framework and space

applications, which could also be put to greater use for marine spatial planning. The importance of

continuous review, adaptation and enhancement of maritime security capabilities and infrastructure for

threat mitigation and avoidance along with regional and international cooperation was emphasized.

International Cooperation

3.52 It was felt that India should carefully identify international partners with common interests, proven

capabilities and know-how in the Blue Economy for technology sharing, adaptation and transfer which will

have long lasting benefits. In this context, India should recognize an important emerging economic and

strategic axis that spreads from the East Coast of Africa to the Western Pacific Ocean, which can be called

the Seychelles-Singapore-Samoa (SSS) axis.

India, in turn, should share its own capabilities with other maritime partners and neighbors for

enhanced goodwill and inter-dependence. This includes using development partnership assistance for

implementing blue projects in the maritime neighborhood. A comprehensive plan to understand the

requirements of our maritime neighbors and offer focused assistance for their capacity development through

supply of hardware, training, joint operations, data gathering/sharing for better marine domain awareness,

and disaster relief should be evolved.

It was recommended that the government should initiate development of an effective plan of action for

raising financing for blue growth, including closer coordination with multilateral and global financial

institutions to expand our access to funding through green and blue bond markets.

Blue Diplomacy

3.53 The Group highlighted that it is important to develop a well calibrated approach towards the evolving

global legal framework for ocean governance and to prepare a properly qualified and trained pool of

negotiators for adequately defending Indian interests in the long run. Accordingly, for achieving this,

suitable courses at relevant educational and training institutions should be introduced along with imparting

the highest level of training and skill upgradation to officials currently connected with these processes.

27 | P a g e

4. THE WAY FORWARD - A DRAFT POLICY FRAMEWORK FOR INDIA’S

BLUE ECONOMY

Introduction

4.1 India has a unique maritime position. Its 7517 km long coastline is home to nine coastal states and

1382 islands. The country has 12 major ports and 187 non-major ports which handled about 633.87 million

tons of cargo in the year 2019. 95% of India’s trade by volume transits by sea. India’s Exclusive Economic

Zone of over two million square kilometers is rich in living and non-living resources and holds significant

recoverable resources of crude oil and recoverable natural gas. It can potentially enhance value addition in

coastal manufacturing and services, in trade, in shipping, in deep sea minerals, aquaculture and fisheries

and marine-related technologies. The coastal economy also sustains over 40 lakhs fishermen and other

significant populations of coastal communities.

4.2 These vast maritime interests of India, therefore, have a vital relationship with the nation’s economic

growth and national security. India’s Blue Economy is a subset of the national economy comprising of the

entire system of ocean resources and man-made economic infrastructure in marine, maritime and the

onshore coastal zones within India’s legal jurisdiction which aid in the production of goods and services

and have clear linkages with economic growth, environmental sustainability and national security.

In order to reap the benefits of India’s Blue Economy, the following draft policy framework is

proposed after analyzing the rich inputs given in the detailed sub-group reports.

Global Status

4.3 The economic philosophy of the Blue Economy was first introduced in 1994 by Professor Gunter

Pauli at the United Nations University (UNU) to reflect the needs of future growth and prosperity, along

with the threats posed by global warming. Thereafter, the Blue Economy assumed greater importance after

the Third Earth Summit Conference - Rio+20 in 2012. The conference focused on expanding the concept

of Green Economy to the Blue Economy. The United Nations’ Sustainable Development Goal 14 sought

to “conserve and sustainably use the oceans, seas and marine resources for sustainable development” as a

guiding principle for global governance and use of ocean resources. Several member nations have evolved

their own definitions and paradigms of the Blue Economy.

4.4 The world-over different national and global initiatives are being undertaken to harness the Blue

Economy. Countries like Australia, Brazil, U.K., U.S., Russia, and Norway have developed dedicated

national ocean policies with measurable outcomes and budgetary provisions. Countries like Canada and

Australia have enacted legislation and established hierarchal institutions at federal and state levels to ensure

progress and monitoring of Blue Economy targets.

4.5 India was among the first in the world to create a Department of Ocean Development in 1981. Based

on the experience of more than three decades, India has come a long way with the launch of new

programmes such as “Deep Ocean Mission,” “Oceanography from space” and “Launching of the data

buoys” along the Indian coastline. The successor Ministry of Earth Sciences (MoES) has joined United

28 | P a g e

Nations on the “Clean Seas Programme” to develop strategies for estimating and reducing Marine

Litter/Plastic in the oceans, which is also a part of SDG-14. India also has exclusive rights of exploration

in 75000 square kilometers in area and 10000 square kilometer area for polymetallic nodules and

polymetallic sulphides in the international water of the Indian Ocean.

Vision

4.6 The Government of India’s Vision of New India by 2030 enunciated in February 2019 highlighted

the Blue Economy as one of the ten core dimensions of economic growth. The Blue Economy was

mentioned as the sixth dimension of this Vision stressing the need for a coherent policy. An earlier Draft

Policy on the Blue Economy was initiated by the Ministry of Earth Sciences (MoES) in 2015 but was never

finalized. This policy framework has built upon several ideas incorporated in that policy paper.

4.7 India’s approach to harness the Blue Economy’s socio-economic potential should focus on: -

• A framework for proper measurement of Blue Economy activities and their contribution to the

national income;

• Spatially oriented planning along with scientific assessment of Ocean resources and their -

sustainable use

• Investment in financial capital, physical capital, natural capital and human capital to harness the

potential of the Blue Economy and optimize GDP and employment growth;

• Ensuring welfare, safety and livelihood of fishermen in the coastal areas

• Innovation to ensure zero waste, low carbon technologies that yield economic dividend for

large sections of the population,

• Ocean security measures and balanced international engagements.

Title and Enforcement

4.8 This Draft Policy could be called the “National Policy for India’s Blue Economy - 2020”. The

Government of India should evaluate, analyze, review and change this draft policy as it deems fit. For the

purpose of this chapter, it will be referred to as the “Policy”. The Ministry of Earth Sciences will be the

Nodal Ministry for the administration of the Policy

Objectives & Approach

4.9 The final Policy as and when approved will be the primary policy and decision-making document

for matters relating to India’s Blue Economy.

The essential components of the Policy will cover the following subjects in its ambit.

(A) A National Accounting Framework for the Blue Economy

29 | P a g e

4.10 A new robust mechanism to generate and collect reliable data pertaining to the Blue Economy would

be developed. Periodical studies on specific sectors of the Blue Economy to assess the composition, growth

and trajectory would be undertaken.

4.11 An Expert Group would be constituted to identify the sectors and sub sectors relating to the Blue

Economy and to evolve a framework for measurement. The existing industrial classification protocols and

weightage assignment would be re-visited to this end. Scientific collaborations with leading

countries/institutions for developing scientific tools and technologies relevant to blue economy

measurement and management will be pursued.

(B) An Environmentally Sustainable National Coastal Marine Spatial Planning

Framework

4.12 Scientific and accurate mapping of India’s coastal zones will lead to integrated coastal and marine

Spatial plans. India would adopt and adapt the UNESCO-IOC guide. An Expert Group would be

constituted to suggest modifications required for our national and local needs. This would require close

coordination between the Ministries of Earth Sciences and Environment, Forests & Climate Change and

other related departments/institutions. The CMSP would form the basis for the future development of the

Blue Economy in India’s EEZ including India’s islands territories and in terms of planning ecotourism in

island areas and increasing the number of Blue Flag beaches . Since CMSP is based upon availability of

data to a wider user base, a new National Map and Data Policy will be formulated balancing the interests

of data security, transparency and accessibility.

4.13 The growing menace of marine pollution specially from plastics and micro-plastics will be

addressed by a robust Plastic Elimination and National Marine Litter policy involving Ministries of

Environment, Earth Sciences and Urban Development, state and local governments and coastal

communities in a time bound manner. The National Coastal Mission, being proposed by Ministry of

Environment and Forests and Climate Change will be integrated with the Blue Economy activities. Also

the implementation of Sustainable Development Goal (SDG-14) will be a part of Blue Economy Policy.

(C) A Vision to Develop Marine Fisheries, Aquaculture and Fish Processing.

4.14 In the last five years, the fisheries sector has shown the highest growth within the agriculture and

allied sectors. The Blue Revolution would be further expanded by promoting aqua culture, cage culture,

seaweed and algae harvesting and sustainable marine capture by adopting an eco-system approach to

fisheries management. Extensive use of technology, tele-communication, digital and remote sensing

applications would be mainstreamed in all aspects of fisheries and ocean management. However, emphasis

will be given for sustainable use of fishery resources in the coming years.

4.15 The lives and livelihoods of fishermen will be protected and enhanced with the last mile

communication connectivity, financial inclusion, upgraded post-harvest management and marketing

interventions. Mariculture such as production of algae will be promoted by enunciating a comprehensive

National Mariculture Policy. The potential of marine bio-technology with focus on the non-food sector of

30 | P a g e

fishery resources will be harnessed. Setting up a national level “Institute for Marine Biotechnology”

focusing on non-food sector for generation of new technologies to tap the immense potential for

commercialization would be expedited. Suitable steps including legislation, if required, will be taken for

comprehensive management and regulation of marine fisheries and for management of aquatic diseases and

ocean health.

(D) A Vision to Enhance Domestic Manufacturing, Emerging Industries, Trade,

Tourism, Technology, Services and Skill Development connected with the Blue

Economy

4.16 There is a vast potential for economic growth and employment through development of ports with

improved logistics, fisheries, ship building and coastal and cruise tourism (including island tourism and

development). A quantum and qualitative boost to all of these would be given by suitable schematic

initiatives and by encouraging the private sector to invest in new business opportunities. The new and

emerging areas such as marine biotechnology, deep sea mining and ocean energy will be promoted.

Innovative financing and business models will be explored for these emerging sectors since they are capital

intensive.

4.17 R&D and innovation hold the key to efficiency gains and leadership by India for which R&D hubs

with forward and backward linkages between scientific institutions and industry would be created in the

coastal states. Blue Trade and Blue Manufacturing will be pursued to maximize employment generation

and export potential for which suitable skilling courses and conducive regulatory regimes will be devised.

Environmental impact assessment studies would be carried out periodically in environmentally sensitive

tourist areas so as to limit infrastructure and footfalls to ‘carrying capacity’ of the ecosystem.

(E) An Integrated Plan for developing Logistics, Infrastructure and Shipping

(including transshipments)

4.18 Marine clusters that are pivotal for port led development as already conceptualized in the Sagarmala

programme would be given impetus through enhanced focus and funding. The ship building industry in

India would be promoted and modernized with a 30-year plan with a thrust on Make in India and

Atmanirbhar Bharat.

4.19 A holistic approach to enhance logistics and connectivity will be taken so as to further improve the

ease of doing business and efficiency including the harmonization of tax regimes. A National Master Plan

for a Multi Modal Network and Digital Grid to reduce logistics costs will be launched. Telecommunications

and digital infrastructure would be strengthened for coastal and island areas. A National Maritime Policy

would also be enunciated for integrated planning of the complex and strategic maritime sector.

(F) A Framework for Coastal and Deep-Sea Mining, New and Renewable Offshore

Energy and Research & Development

31 | P a g e

4.20 The oceans hold tremendous potential to provide renewable energy, hydrocarbons, precious

minerals and metals. Several contracts have been awarded for exploration of hydrocarbons in the EEZ and

in this regard, there is need for inter-ministerial coordination for issue of clearances, data sharing etc.

Investments will be prioritized with appropriate financial outlays as well as deployment of human resources

to carry out research and develop technologies. The scientific collaborations between domestic institutions

as well as international ones would be integrated and strengthened. It is envisaged to launch a National

Placer Mission to explore workable deposits and evolve a roadmap for their extraction. India will also take

a lead role in exploration of cobalt rich Sea Mount Ferro Manganese Crust (SFMC) in the Indian Ocean.

Suitable policies for prospecting and mining along with environmental impact audit would also be evolved.

India is committed to explore the EEZ by 2023 and, to this end, the launch of a manned submersible vehicle

going to the deepest ocean levels, in collaboration, if necessary, with other partners is envisaged. India’s

pool of technical and scientific personnel would be further strengthened with curriculum focus on Blue

Economy and Blue Research in higher technical education. India should continue to carry exploration

activities in international waters in the areas allotted for minerals.

4.21 An inventory of our marine resources both living and non-living and including seabed resources is

proposed to be undertaken so that a National Marine Resources Database is created expeditiously.

(G) An Integrated Framework for Ocean Security, Strategic Dimensions and

International Engagements

4.22 India will engage holistically with all relevant international parties and platforms to further blue

growth, protect marine bio-diversity and safeguard its strategic interests. India acknowledges an important

emerging economic and strategic axis that spreads from the East Coast of Africa to the Western Pacific

Ocean, which can be called the Seychelles-Singapore-Samoa (SSS) axis.

4.23 A well calibrated approach would be taken to ensure that India continues to contribute significantly

to the work of Commission of the Limits of the Continental Shelf (CLCS), International Seabed Authority

(ISBA), International Tribunal on Law of the Sea (ITLOS) set up under the United Nations Convention on

the Law of the Sea (UNCLOS),and other important negotiations such as Biological Biodiversity Beyond

National Jurisdictions(BBNJ) etc and other multilateral fora viz. Intergovernmental Oceanographic

Commission of UNESCO. Strong presence in these bodies is therefore imperative. Marine domain

awareness would be strengthened along with international partnerships with key partner countries. India

will continue to work for a safe Indian Ocean as envisaged in the Security and Growth for All in the Region

(SAGAR) in 2015 that will deepen Blue Economy partnerships with maritime neighbors. A medium-term

plan highlighting the needs of various maritime neighbors would be drawn up so that development

assistance is targeted and in line with mutual priorities. Another area where India will engage is in the

ongoing trade negotiations on Fisheries Subsidies at the WTO.

4.24 Multilayer surveillance and security in the Indian Ocean would be enhanced specially through

domestic manufacturing and procurement. Coastal and marine security would also be strengthened for

which a comprehensive plan will be formulated and implemented in partnership with the states.

32 | P a g e

(H) Ocean Governance

4.25 All the constituent aspects of the Policy rest upon a cohesive ocean governance framework that

ensures coordination, communication and clarity between multiple stakeholders and multiple levels of

administrative authorities and coastal communities. There is a need to take forward and operationalize the

draft policy in a coherent manner. This will avoid work in silos, duplication of efforts and will achieve

policy harmony. Accordingly, an Apex body called the National Blue Economy Council (NBEC) is

proposed to be set up so as to bring all the existing expertise and schemes under one oversight agency for

holistic planning and implementation.

Blue Economy Governance Framework

4.26 It is proposed that the National Blue Economy Council be embedded, bringing together all relevant

stakeholders. The NBEC framework proposes to include, while keeping in view the principal of

consistency, all other authorities, sectoral frameworks and policies in force relating to the subjects

mentioned above. This would result in an integrated approach while addressing interconnected issues and

optimal use of financial resources. This Council would facilitate in the following tasks:-

i) Overall evaluation and monitoring of the Blue Economy schemes, projects and targets for timely

implementation.

ii) Provide guidelines/directives for promoting the objectives of the Policy.

iii) Provide guidelines/directives to the Ministries/Departments in development of international

cooperation, capacity building in Blue Economy.

iv) Provide guidance/directives towards tariff setting, fisheries subsidy negotiations, and regulatory

issues, wherever required.

Further, India does not have a specific organizational framework or complete/comprehensive

regulations relating to granting of permissions, leasing, evaluation and monitoring of offshore activities

such as exploration, transport, storage, etc. Some ministries like MNRE have attempted to do this.

Therefore, there is an urgent need to evolve a seamless governance structure for the environmental

management of all ocean resource-minerals, deep sea fishery resources, offshore energy development etc.

in India. This will enable coordination across ministries and state governments and take into consideration

international experiences with different regulatory and governance approaches. This would be an important

responsibility of the proposed NBEC.

4.27 This body would be the Apex body that would integrate planning process between various

stakeholders in the Central, State and local Governments. It would also include representatives from

industry, research organizations and policy advocacy groups.

The Council members could be the Ministers of Earth Sciences, External Affairs, Environment,

Forests & Climate Change, New & Renewable Energy, Mines, Petroleum and Natural Gas, Fisheries,

Science & Technology, Tourism, Defence, Commerce, Shipping, Finance and NSA. Further, the Chief

Ministers of coastal States would also be members along with Vice Chairman of NITI Aayog. The

Presidents of FICCI, ASSOCHAM and CII could also be invitees and the Secretary, Ministry of Earth

Sciences could be the Member-Secretary.

33 | P a g e

The Council would be required to meet at least once a year to discuss key issues, approve plans and

strategies as well as review achievements.

4.28 The implementation of the various action points would require an Executive Committee that would

be responsible for undertaking planning, co-ordination and oversight of projects being executed by

Ministries and State governments. Accordingly, the Council would operate through its Executive

Committee which may be chaired by the Minister, MoES with CEO of NITI Aayog as Vice Chair and

Secretary, Ministry of Earth Sciences as Member-Secretary. The Secretaries of Ministries of Finance

(Department of Expenditure), External Affairs, New & Renewable Energy, Environment, Forests &

Climate Change, Petroleum & Natural Gas, Fisheries, Science & Technology, Tourism, Defence, Shipping,

Commerce, and concerned Chief Secretaries of the coastal states, representative of NSA and senior

representatives of Industry Associations concerned could be Members.

The executive committee may have the following terms of reference:

(i) Facilitate and support Ministries/Departments in implementation of the recommendations of the

National Blue Economy Council

(ii) Undertake planning, co-ordination and oversight of projects being executed by Ministries and

State governments

(iii) Provide support to Ministries/Departments in development of international cooperation,

capacity building in Blue Economy

(iv) Facilitate Ministries/Departments in tariff setting, fisheries subsidy negotiations, and regulatory

issues, wherever required

The Committee would be expected to meet as and when required, subject to a minimum of, say,

three times a year The Council would have a designated Chief Executive Officer (CEO) of suitable seniority

rank and experience. However, the requirement of the suggested Council and the Executive Committee

could be evaluated in consultation with MoES before finalizing the policy framework.

National Blue Economy Fund (NBEF)

4.29 A Blue Economy Fund to implement various initiatives under NBEC would be set up either through

an administrative arrangement from participating ministries/departments or as stand-alone budgeted item

under the administrative control of the Governing Council of the NBEC. Its objective would be to initiate

and support cross cutting projects of strategic importance to India.

Objectives for the Medium Term

Issues will evolve over time, however, the following actionable points are tentatively envisaged in

the medium term.

Blue Economy Legislation

4.30 There will be a need to enact an appropriate legislative framework for the Blue Economy in the

34 | P a g e

medium term. Based on a needs assessment, a broad overarching legislation and/or specific laws linked to

relevant ministries may be reviewed, amended or enacted to ensure development, regulation and

compliance. However, in the near term, the proposed policy framework should be sufficient to allow the

institutionalized functioning of a body like the NBEC. Future legislation may be considered for CMSP for

which the NBEC could be the administrative body.

Enhanced Capacities

4.31 The Blue Economy should be viewed as an important growth and employment multiplier. This creates

the need to generate requisite capacities in a talent pool to cater to its constituent sectors. This would require

orienting higher educational courses towards the blue economy. At the same time, linkages need to be

established with universities and research and development institutes like the National Institute of Ocean

Technology and the National Institute of Oceanography in order to employ the talent pool in different sectors

of the Blue Economy. A plan to develop the needed human resource skills in the country for different areas

of Blue Economy, and at different levels, would need to be formulated, along with evolving a new

curriculum on Blue Economy within the framework of the New Education Policy. This could be carried out

jointly by the Ministries of Education, Skill Development and Earth Sciences.

Swachh Bharat to Swachh Prithvi, Swachh Sagar

4.32 The Swachh Bharat Mission (SBM) launched by Hon’ble Prime Minister on 2nd October 2014 is

the world’s largest sanitation, waste management and behavior change programme. It already has made a

significant impact in both rural and urban areas.

Today, marine pollution is the greatest threat to the health of the oceans. About 80% of marine

pollution emanates from land based sources specially from coastal cities and communities. Therefore, it is

the need of the hour to expand the approach and implementation of Swachh Bharat to the concept of

‘Swachh Prithvi, Swachh Sagar’. This will bring a unique and holistic vision to human and industrial waste

management strategies especially in coastal areas achieving convergence between land and water based

interventions. It will also make India the first nation globally to enunciate such a vision. The Ministries of

Environment, Forests & Climate Change, Urban Development and Earth Sciences will need to partner with

state and local governments and coastal communities to implement this unique approach.

CONCLUSION

4.33 The draft Policy aims to significantly enhance the contribution of the Blue Economy to India’s GDP

in the next five years, improve lives of coastal communities, preserve our marine biodiversity and maintain

the security of our marine areas and resources. Today, the Blue Economy holds the promise of being the

next multiplier of economic growth and well-being, provided that the strategy places sustainability and

socio-economic welfare at the centre stage. Therefore, the proposed roadmap for evolving a Blue Economy

Policy would be a crucial step towards unlocking the potential of economic growth and welfare.

******

35 | P a g e

Annexures

36 | P a g e

Annex I

37 | P a g e

38 | P a g e

Annex II

39 | P a g e

40 | P a g e

41 | P a g e

42 | P a g e

43 | P a g e

Annex III

Links to the Reports of the Working Groups

1. National Accounting Framework and Ocean Governance

https://eacpm.gov.in/index.php/reports-papers/eac-reports-papers/

Blue Economy Working Group: 1 Report

2. Coastal Marine Spatial Planning and Tourism



3. Marine Fisheries, Aquaculture and Fish Processing.



4. Manufacturing, Emerging Industries, Trade, Technology, Services and Skill Development



5. Logistics, Infrastructure and Shipping (including transshipments)



6. Coastal and Deep-Sea Mining and Offshore Energy



7. Security, Strategic Dimensions and International Engagement



44 | P a g e

india’s blue economy

Documents